Principal Issues: Whether bed clothing, disposable gloves for caregivers and body ointments qualify for the METC as "other products" pursuant to paragraph 118.2(2)(i.1).
Position: Likely no.
Reasons: "Other products" refers to products designed for use by incontinent persons.
XXXXXXXXXX 2010-035986 C. Tzortzis June 23, 2010
Dear XXXXXXXXXX :
Re: Various expenditures as eligible medical expenses due to incontinence
We are writing in reply to your letter dated March 2, 2010, wherein you indicated that your spouse is immobile due to spinal stenosis and suffers from incontinence. You are enquiring whether the costs for bed clothing, disposable gloves for caregivers and body ointments to treat and prevent infection are eligible medical expenses for the purposes of the medical expense tax credit ("METC").
Since your inquiry concerns an actual situation involving questions of fact, it should be dealt with by your local tax services office. If you wish to have the CRA review your actual situation, you should submit all of the relevant information and documentation to the particular tax services office serving your area, a list of which is available on the "Contact Us" page of the CRA Web site at www.cra-arc.gc.ca. Although we cannot comment on your specific situation, we are prepared to provide the following general comments, which may be of assistance.
Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of the Income Tax Act ("Act"). If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2) of the Act, or if the conditions under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the METC, even though the expenditure may have been incurred for medical reasons.
As you noted in your correspondence, paragraph 49 of Interpretation Bulletin IT-519R2 (Consolidated), Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, refers to paragraph 118.2(2)(i.1) of the Act which allows as qualified medical expenses the costs for diapers, disposable briefs, catheters, catheter trays, tubing or other products required by the patient by reason of incontinence caused by illness, injury or affliction. Though this wording may appear broad, the explanatory notes to the provision indicate that the provision qualifies all products designed for use by incontinent persons. To the extent that the bed clothing, disposable gloves for caregivers and body ointments are generic and not designed for use by incontinent persons, it is our view that such expenses are unlikely to qualify as medical expenses under this provision.
Medical ointments to treat or prevent infection may qualify for purposes of the METC under subparagraph 118.2(2)(n)(i) of the Act if these ointments can lawfully be acquired for use by the patient only if prescribed by a medical practitioner or dentist, and the purchase of which is recorded by a pharmacist. If the medical ointments may be obtained lawfully without a prescription, they may qualify under section 5701 of the Income Tax Regulations if prescribed by a medical practitioner and if the ointment may be lawfully acquired for use by the patient only with the intervention of a medical practitioner (a pharmacist, for example). Therefore, ointments purchased off the shelf would not qualify for the purposes of the METC as the above conditions would not be met.
We trust that these comments will be of assistance.
Yours truly,
G. Moore
For Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch